THE HONGKONG GOVERNMENT GAZETTE, 2ND MARCH, 1867.
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Military Contribution and one of the leading arguments in that address was the poverty of the Chinese residents, who were represented some to be "quite beyond the pale of taxation," and the majority of the rest to be only artisans or "small shopkeepers in “ a way of business far from lucrative."
I have already stated that this impoverished class contributes 4-7ths. of the Colonial Revenue, and I may now inform you that although the European population paid $110,000 of this year's Rates, the Chinese had paid up to the 25th August no less than $94,000. Now it does seem inconsistent to have represented them two years ago as incapable of bearing the burden of taxation, and yet, when the object is to move that burthen from the Europeans, to discover that doubling the Rates, to which the Chinese already contribute so heavily, would be a just and expedient measure. I think it would be well, if each indignation Meeting, before endorsing any Memorial, were to refer to the records of its predecessor.
I may add that even the weak argument of the Chinese probably evading the provisions of a Stamp Ordinance is not borne out by experience in the Straits, where the Chinese regard the Government Stamp as giving an additional validity to their bargains, in harmony with their own customs, and which they think well worth the cost.
I scarcely know whether I ought to note the fact mentioned in the Protest that one of the official Members of Council expressed an opinion adverse to the principle of the proposed Bill. I understood him merely to ask for a preliminary inquiry into the preferable mode of raising the necessary funds, and that he disapproved of the Schedule of the Singapore Act, which I likewise disapproved. I believe the amended Schedule entirely meets his views and that it really meets those of many others originally opposed to the measure, and indeed it is quite evident from the tone of a portion of the Press that the Memorialists do not represent Public feeling so generally as they had supposed.
I regret extremely that I have been obliged to occupy your attention so long, but I have no other means of placing before the Public the Government views of a very important question. I shall however only advert to one more point, but that is the heaviest grievance of the Memorialists, viz.: "the expansive powers of a Stamp Ordinance." It appears I had mentioned this as amongst the advantages of such taxation. This they call "the evil at the bottom of the whole proposition." I would remind them that, if I mentioned that point, I equally alluded to such a Bill's "capability of immediate contraction" whilst the objection of expansiveness Hes more or less against every scheme of taxation. Those who see a capability of expansion in Stamps have not failed to discover it also in the Police and Water Rates and even to press it to the extent of class legislation.
In point of fact however it was rather contraction than expansion which I had in view-for I was aware that a serious objection to the Bill—and one, which deprives me of the adhesion of some leading Members of the Community is that it is impolitic for the Colony to shew any surplus on its Balance Sheet. It is thought I hope only by a few-that the Home Government might in such case increase the Colonial contribution towards Imperial objects.
You see that I am very candid--but that such feeling did exist and does exist is well known to many of my friends and I could not ignore it.
I therefore caused the proposed Bill to be so framed as to give the Governor in Council power to annul or lessen the Duty on any item, but no power to add to the items or increase the Duties. It does appear to me therefore rather hard that, having been thus careful to prevent the receipts from Stamp Duties exceeding the contemplated requirements of the Government, I should find the Memorialists designating my well intentioned effort in their behalf-as "the evil lying at the bottom "of the whole, proposition."
I have now put the Government case before you-and shall be well pleased, if I find, on discussion, that without undue sacrifice of Revenue, I can redistribute the incidence of the proposed taxation in a manner more acceptable to those whom it will affect.